One of the most powerful tools in Excel is the ability to perform calculations using formulas. Formulas are what make spreadsheets so flexible and useful. Like a calculator, Excel can add, subtract, multiply, and divide. In this lesson, we will look at the basic mathematical operators used in Excel, and also get acquainted with the benefits of using cell references in formulas.
Mathematical (arithmetic) operators
Excel uses standard operators for formulas, such as: sign plus for addition (+), minus for subtraction (-), star for multiplication (*), slash for division (/) and circumflex for exponentiation (^).
All formulas in Excel must begin with an equal sign (=). This is because Excel equates the data stored in a cell (i.e. the formula) to the value it calculates (i.e. the result).
Link Basics
Although you can create formulas in Excel using fixed values (for example, =2+2 or =5*5), in most cases cell addresses are used to create formulas. This process is called link building. When creating cell references, make sure that formulas do not contain errors.
Using links in formulas provides a number of benefits, ranging from fewer errors to easier editing of formulas. For example, you can easily change the values referenced in a formula without having to edit it.
Using mathematical operators, together with cell references, you can create many simple formulas. The figure below shows some examples of formulas that use various combinations of operators and references.
There are several types of links in Excel. Check out the lessons in Relative and Absolute Links for more information.